Delivering its financial results for the first quarter of 2018, MGM Resorts has reported $2.1bn revenue from its US domestic estate, a one percent decline from corresponding results of the previous year.
An underlying factor in why the group recorded losses was that it has taken longer than first anticipated for it to recover from last year’s mass shooting, which took place at the Mandalay Bay and resulted in a dwindling in occupancy at the resort.
Furthermore, the cancellation of the much anticipated Cinco De Mayo rematch between Gennady Golovkin and Canelo Alvarez also affected the recovery of the MGM, as the event was set to be one of the biggest grossing Vegas based sports events events.
The results led to the company’s share prices taking a hit and decreasing as much as 10 per cent, in the aftermath of the releasing of the news.
MGM Resorts CEO Jim Murren said in a statement: “For the remainder of the year, we expect continued disruption at Monte Carlo and additional time to recover at Mandalay Bay. Additionally in the second quarter, the cancellation of a major prize fight in May moderates our expectations, particularly at our luxury properties.
“That said, we expect our Las Vegas Strip net revenues to be up slightly and our Las Vegas Strip revpar [revenue per available room] to increase one per cent to three per cent. We also expect similar Las Vegas Strip adjusted property EBITDA margin compression in the second quarter as experienced in the first quarter.”
In spite of the negative results, MGM did announce some positive domestic news today confirming that its $950m property in Springfield Massachusetts will open a month ahead of schedule, on August the 24th.
Speaking about the new project, Michael Mathis, president of MGM Springfield, stated: “A testament to a decade of collaboration between the city of Springfield and MGM Resorts, MGM Springfield will pay tribute to the city’s legacy and celebrate its bright future, while introducing a stellar array of hospitality and entertainment experiences that will attract guests from New England and beyond.”